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Jakarta Post

Indonesian economy remains under stress as cases continue to climb

  • Dzulfiqar Fathur Rahman

    The Jakarta Post

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Jakarta   /   Tue, February 9, 2021   /  07:22 am
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A butcher checks his phone while waiting for buyers at West Tebet Market in South Jakarta on Tuesday.(JP/Seto Wardhana)

The Indonesian economy will remain under pressure this year and its recession is likely continue into the first quarter, economists have said, because of persistently rising COVID-19 cases, which have depressed economic activity and limited consumption. The country’s gross domestic product (GDP) shrank 2.07 percent year-on-year (yoy) in 2020, the first annual contraction since the 1998 Asian financial crisis, Statistics Indonesia (BPS) announced on Friday. Nearly all components of GDP fell last year, with the exception of government spending, which grew as a result of COVID-19 stimulus packages. The country’s GDP is expected to contract again in the first quarter, marking a prolonged recession, although the decline will likely be less severe than in the fourth quarter of last year, when the economy shrank by 2.19 percent yoy, said Piter Abdullah, an economist at th...